Mumbai – The Central Board of Investigation (CBI) has taken swift action in response to a grave financial scandal, unveiling an FIR against Unity Infraprojects Ltd for their alleged involvement in a staggering ₹3,847.58 crore bank fraud. This development comes following a formal complaint lodged by the State Bank of India, a key member of the consortium.
The intricate web of deception reportedly unraveled at the bank’s commercial branch in Mumbai. The SBI alleges that company officials orchestrated fictitious transactions, manipulated financial records, and engaged in fraudulent activities with the sinister aim of unlawfully siphoning the bank’s funds for their own gain.
The CBI, spurred into action, conducted extensive searches at four locations in Mumbai, with the former CMD of Unity Infraprojects, Kishore Krishnarao Avarsekar, being implicated in the case. Shockingly, the infra firm’s account was classified as a non-performing asset back on June 24, 2014, despite the bank having extended over ₹3,800 crore from 23 different lenders, backed by both movable and immovable assets, personal and corporate guarantees.
The startling revelation of this bank fraud emerged following a forensic audit by BDO India LLP, which exposed a litany of irregularities, including fictitious transactions, manipulated accounting entries, funds diversion through non-consortium accounts, and unexplained excess payments, all designed to siphon off bank funds.
In response to this alarming situation, the CBI has filed an FIR not only against the company but also its former chairman and directors, invoking sections of criminal conspiracy, cheating, and the Prevention of Corruption Act.
This case serves as a stark reminder of the need for stringent vigilance and oversight in the financial sector. The CBI’s decisive action sends a clear message that fraudulent activities of this magnitude will not be tolerated, and those responsible will be held accountable.